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-   -   Capital Gains vs Real Estate (https://www.askmehelpdesk.com/showthread.php?t=25260)

  • Apr 25, 2006, 09:16 PM
    CHAYOTE23
    Capital Gains vs Real Estate
    If you have had a property longer than two years and decided you would llike to sell the property How I avoid paying capital gains tax or what if I start a Corporation and quick deed the property to the Corporation. What is the benefit of deeding rental property (Investment Property) to a C- Corporation, S-Corporation, LLC etc if I make myself the CEO/VP etc. Is there an advantage
  • Apr 26, 2006, 04:52 PM
    AtlantaTaxExpert
    Would not advise such a strategy, as the IRS will view it for it is, an attempt to evade taxation by transferring property to a related party.

    NOTE: A related-party does NOT have to be a relative by blood or marriage. A related party can be a solely-owned corporation.
  • Apr 26, 2006, 07:33 PM
    CHAYOTE23
    I am not sure what you mean because before the property is sold the corporation at that time would have own the (Real Estate) for over 3 years, so again. How is does one avoid Capital Gains in terms of selling a home or other Real Estate bedcause my intentions are not to quik deed the property over to a corporation only for sale. My question is for future answers in regards to Capital Gains vs Real Estate.
  • Apr 27, 2006, 06:10 AM
    AtlantaTaxExpert
    Assuming you avoid the related-party trap I cited above, when you transfer the property to a corporation, it is a taxable event; capital gains taxes will be due. If you gift the property to the corporation, gift taxes will be due.

    You really need to contact a local tax professional, preferably an enrolled agent or CPA, to discuss these issues in detail. This forum is too limited in scope to properly account for all the variable in such a complex real estate transaction.

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